Chips in the Crossfire: Options Flows Signal Doubt

Semiconductor stocks dominate options activity this week. The signal is unusually split — and that split tells a story.

MU topped both the positive and negative options bets rankings over the last seven days. That two-sided pressure is rare. It reflects genuine disagreement about the memory boom's durability. NVDA and AMD sit just behind with heavy negative flow, even as the Nasdaq 100 climbed to fresh highs on returning AI enthusiasm.

The bearish catalyst is hard to ignore. Michael Burry has taken a position against the memory rally. He targeted names including MU and AMAT. The market has noticed. Negative options bets on semiconductors hit their highest concentration in weeks.

Yet bulls haven't folded. META recorded the most positive options flow of any large-cap. Its RSI sits at 77.8, the highest among mega-caps tracked this week. Call activity suggests buyers expect further gains despite an already elevated price.

Away from tech, KBH flashed an interesting signal. The homebuilder posted a Q3 earnings beat despite what management called a "weakening" housing market. Its short score sits at 58.6 with 4.6 days to cover. That combination of a beat and elevated short interest raises squeeze potential.

LULU also drew attention. Down 51% year-to-date, its options score remains weak. But negative bet volume has started to slow — a possible sign of short exhaustion rather than recovery conviction.

The broader picture: AI optimism is lifting indices, but options traders are quietly hedging the chip names hardest. Watch MU for the clearest read on which camp wins.